In this article you will learn more about the Keltner Channel Indicator for Metatrader, one of the popular channel indicators based on an exponential moving average (EMA) and the average true range (ATR).
What Is The Keltner Channel In Trading?
The Keltner Channel is an indicator used in trading, many find it similar to Bollinger Bands.
Both Keltner and Bollinger bands are volatility channels and indicators.
The Keltner Channel is a channel indicator based on volatility and it uses an EMA and ATR.
Some traders include this indicator to build their strategies.
It could be useful for breakout, continuation, reversal.
How Do You Calculate The Keltner Channel?
The calculation of the Keltner Channel is quite easy.
The indicator includes three lines:
- The middle line is an exponential moving average (EMA) usually of a period 20
- The top line is the EMA + ATR x Multiplier
- The bottom line is is the EMA – ATR x Multiplier
The chart below shows quite well the l channel and the volatility.
What Is The Difference Between Keltner Channel And Bollinger Bands?
If you are wondering what is the difference between Bollinger Bands and Keltner Channel, it’s a fair doubt.
Both are indicators based on volatility, the main difference is how the volatility is considered.
The Keltner Channel is based on Average True Range (ATR) and a multiplier while the Bollinger Bands are based on standard deviation.
What Is Keltner Channel For MT4 And MT5 Used For?
I personally don’t use it as it doesn’t really fit with my trading style and strategies.
Some traders looks at the Keltner Channel as part of their chart study.
In some cases it can be used as continuation, break out or reversal.
Like many other indicators, Keltner Channel is lagging, it is calculated on previous data.
Download Keltner Channel Indicator For MT4 and MT5
You can download Keltner Channel Indicator for MT4 and MT5 for FREE from the following pages.
Please note that the indicator is for the Metatrader Platform and you will need to have the platform already installed to use it.
The utilities are available for Free Download, links below.
The tool is easy to use and allows to do everything through drag and drop on chart.
You can download the following indicators from the respective pages in the links below:
Summary
In this article you learned more about what are Keltner Channel and some of its use.
We shared the Keltner Channel Indicator for MT4 and MT5 and provided download links.
Keltner Channel FAQ
What is the Keltner Channel?
The Keltner Channel is a volatility based indicator similar to the popular Bollinger Bands.
It shows a channel around price based on EMA and ATR.
How do you calculate the Keltner Channel?
The Keltner Channel includes 3 lines:
- The bottom line is the EMA – ATR x Multiplier, with ATR period usually being 20 and multiplier 2
- The line in the middle is an exponential moving average (EMA), normally of a 20 period
- The top line is the EMA + ATR x Multiplier, with ATR period usually being 20 and multiplier 2
What is the difference between Keltner Channel and Bollinger Bands?
The Keltner Channel is based on Average True Range (ATR) and a multiplier while the Bollinger Bands are based on standard deviation.
It shows a channel around price based on EMA and AThe Keltner Channel is based on Average True Range (ATR) and a multiplier while the Bollinger Bands are based on standard deviation.TR.
What is the Keltner Channel Indicator?
The Keltner Channel indicator is a charting tool that calculates and draws the Keltner bands directly on chart.
Where can I find the Keltner Channel Indicator in MT4 and MT5?
You can download the Keltner channel indicator for MT4 and MT5 for FREE from the following pages:
MT4 Keltner Channel Indicator
MT5 Keltner Channel Indicator
If you wish to provide feedback or for any help please Contact Us.